In December 2025, Indian government made a pivotal move for its maritime vision and announced its two major shipbuilding schemes with an investment of USD 5.4 billion (NR 44,700 crore). The plan is to turn India into major ship building hub in coming years.
Why it is needed - Presently India’s shipbuilding market is even less than 0.5% of the global share, even though India has a historic maritime legacy of its long coastline. Also it is important to note than of its own commercial vessels India builds only 7% thus there is a huge gap that needs to filled and is seen as an opportunity and need to regain the old glory.
The global shipbuilding is presently dominated by China – 55% + and South Korea – 25% +, Japan 13%+ and then comes rest of the world.
Details of the two schemes announced
1. Shipbuilding Financial Assistance Scheme (SBFAS)
Allocation of USD 3 billion (INR 24,736 crore).
Provides graded financial assistance (15–25%) per vessel type, making orders from Indian yards financially attractive.
Includes multiple supportive incentives like a Ship-Breaking Credit Note (40% of scrap value) to encourage scrapping older ships and ordering new ones domestically.
Structured to disburse funds tied to construction milestones, increasing transparency and reliability for stakeholders.
2. Shipbuilding Development Scheme (SbDS)
Allocation of USD 5.4 billion (INR ₹19,989 crore).
For the development of greenfield shipbuilding parks and modernization of existing facilities.
Establish an India Ship Technology Centre under Indian Maritime University for Research & Development R&D, skills, and technology.
Within this scheme - Greenfield projects to receive 100% capital support for shared infrastructure, while brownfield yards can receive 25% support for key upgrades.
Collectively, these schemes aim to expand India’s annual ship production for total capacity to about 4.5 million tonnes by 2047, turning shipyards into engines of economic growth and technological advancement.
What are the targets
India aims for inhouse shipbuilding of 5% of the global shipbuilding market by 2030.
To be within top give countries in ship building by 2047.
Expected Challenges Ahead
Skill shortages and the need for advanced manufacturing expertise.
Global competition will be faced later in terms of costing and setting the final sales price during international bidding of shipbuilding0 the competition will be faced from established shipbuilders in China, Korea, and Japan.
Financing and long-term order flows beyond domestic demand. There should a strong government in the centre for long term targets to be worked on and to be met.
Infrastructure and ecosystem readiness — from steel supply to deep-water ports.
Conclusion: A Maritime Transformation in Motion
India’s USD 5.4 billion investment a strategic economic posture shift. By combining targeted financing, technology investments, and global ambitions, India is laying the groundwork to become a major maritime manufacturing centre by 2030 and a global shipbuilding hub by 2047. Top of Form
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